Zinc price trend

The zinc market rebounded in May, and zinc prices fluctuated upward. The price of zinc skyrocketed on May 18, and on May 18, the price of zinc rose by RMB 950/ton in a single day. On May 18, the average zinc price was 23,256.67 yuan/ton, a shock increase of 5.82% compared with the zinc price of 21976.67 yuan/ton on May 1 at the beginning of the month, and an increase of 22,313.33 yuan/ton compared to the previous trading day on May 17, the zinc price was 22313.33 yuan/ton. An increase of 4.23%.

Zinc ingot inventory in major markets

According to statistics, ingot inventories in China's main domestic markets have slowly declined, and zinc ingot inventories have declined month-on-month. In May, the zinc market was destocked. On the supply side, the zinc market is in the traditional peak season for consumption, and there is more rigid demand downstream. The zinc market has strong demand, and the zinc market will increase its momentum in the future.

Zinc processing fees rebounded

In May, the domestic zinc concentrate processing fee remained at 3700-4100 yuan/ton, a slight increase compared to April's zinc concentrate processing fee. The increase in zinc concentrate processing fee increased the enthusiasm for the start of zinc smelters, and the output of the zinc market is expected to increase. The zinc market has increased supply, and the zinc market has insufficient momentum to rise and downward pressure still exists.

Analysis

In May, the zinc market continued to destock, and zinc ingot prices fluctuated upward. May is the traditional peak season for zinc consumption in the zinc market. The zinc market has strong demand, zinc concentrate processing fees have picked up, and zinc smelting companies have increased production enthusiasm, zinc production has increased, and zinc market supply has increased. Last week, zinc prices continued to fall sharply, stimulating zinc prices to bottom out and rebound. On the 18th, zinc prices soared by 1,000 yuan. In terms of market outlook, the global economy is generally recovering, and commodities are in an upward cycle. In the absence of clear negative news, the zinc market fluctuated and rose.

Related listed companies: Zhongjin Lingnan (000060), Chihong Zinc Germanium (600497).

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